Last year, 32 emerging technology life sciences companies benefited from the state’s Angel Investor Tax Credit Program.
The New Jersey Economic Development Authority said throughout 2019, it approved 161 applications for investments into those 32 firms. This represents the addition of $33.1 million in private capital to the state’s innovation ecosystem, it said. In the fourth quarter alone, more than 120 of the applications, totaling $22 million in investments, were approved.
Since the program began, the NJEDA has approved 1,322 applications for $549 million into 94 New Jersey-based businesses.
The Angel Investor Tax Credit Program provides investors refundable tax credits against qualified investments for New Jersey businesses. It supports technology-based firms that have a physical presence in New Jersey that conduct research, manufacturing or technology commercialization in the state.
“Attracting investments into early-stage New Jersey companies is pivotal to Governor Murphy’s vision of creating the most diverse and inclusive innovation ecosystem, one centered around the Garden State’s talented workforce,” NJEDA CEO Tim Sullivan said. “We anticipate increased interest in the Angel Investor Tax Credit Program in 2020, as investors realize the benefits these impactful program enhancements have on their investments into emerging New Jersey companies.”
Here are three of the nine technology and life sciences businesses that were new to the program in Q4 2019:
- Radius8 Inc., based in Princeton, is an engagement platform that delivers hyper-local digital experiences to create commerce opportunities for enterprises with physical locations and digital channels;
- Deliveright Logistics Inc., based in Bayonne, is the developer of the cloud-based technology platform Grasshopper, which bridges the gap between e-commerce retailers of heavy goods and final mile companies that specialize in delivering those products;
- Fusion Recruiting Labs, based in Red Bank, provides human resource departments and staffing agencies software tools to simplify and humanize the hiring process.
Investors that participate in the program this year will benefit from an expanded program, which was signed into legislation by Gov. Phil Murphy in July 2019. Changes include (which are effective Jan. 1, 2020) doubling the tax credit —from 10% to 20% — that investors can receive. An additional 5% bonus was also added for businesses located in a Qualified Opportunity Zone, low-income community or a business that is minority- or women-owned.